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News Release


New Ejar Regulations to Mitigate Risks in the Residential Sector in Saudi Arabia

The Saudi Arabian Council of Ministers has decreed the new regulations of Ejar (“Leasing”) electronic platform on Monday 13th of February. Only Ejar unified lease agreements will have legal and administrative effect. In addition, governmental entities will use the electronic platform of Ejar to verify the validity of lease agreements that applicants present to them, which would necessitate the enrollment of applicants on the electronic platform of Ejar. Moreover, the Ministry of Labor and Social Development will require applicants of labor certificate issuance and renewals of non-Saudis to use the electronic platform of Ejar.
Enhancing confidence in the residential rental market in Saudi Arabia is the primary objective of the new regulations of Ejar. The new unified contract of Ejar serves as an executive deed. Tenants, property owners and leasing agents will benefit from the new unified contract of Ejar. Tenants can guarantee their rights. In addition, property owners can ensure timely collection of rents, among other rights specified in the contract. Leasing agents can attain an official certification, which increases professionalism and transparency of the leasing industry.
JLL expects additional investment in the residential sector in Saudi Arabia because of the new Ejar regulations. Income generating residential development wil become an investable grade asset. The approval of the new Ejar regulations is an additional step towards increased competition and transparency. Investors, investment banks, and developers can now observe reduced risk in investment in residential properties because of secured collection of rents and quick enforceability of collection. They have an incentive to invest in residential real estate because of the improved framework of legality in terms of lease agreements due to Ejar.

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